'Japan's IT policy a sham'

By F.J. Khergamvala

TOKYO, SEPT. 20. On the eve of the Mori Government declaring its plans to achieve its ambitious drive to catch up with the U.S. on Information Technology, the famous management ``guru'', Dr. Kenichi Ohmae blasted the Government's plans as a sham being foisted on the Japanese people.

Dr. Ohmae said Japan had neither the education system, nor had it carried out fundamental changes in legislation to create an IT revolution in society. Describing language difficulties as among the biggest barriers confronting the Japanese people, he pointed to the examples of Singapore, Hong Kong and India as successful examples of English-speaking societies where IT flourishes, even alongside poverty, thus proving that throwing money at IT will not achieve much.

At a meeting with foreign correspondents a day before the Prime Minister, Mr. Yoshiro Mori begins a new legislative session during which an IT Bill will be submitted, the former partner in McKinsey & Co., who now heads his own numerous ventures, said among other things, certain vested private interests were driving this misguided policy. Dr. Ohmae directly accused Sony Corp., Fujitsu and Toshiba in this regard. The Chairman of Sony Corp., Mr. Nobuyuki Idei heads the IT Strategic Council, which includes the chief executives of the two other corporations. ``Between them, they will sell 40 million of their own computers to the Government'' as part of a policy they have crafted.

In pursuit of its goal to make an ``e-Japan'' the foremost IT power in five years, the Mori Government today adopted the fairly vague outline drawn up by the Idei panel. One measure being contemplated is to grant an IT coupon worth yen 6,000 to the 100 million people over 20 years of age as a subsidy to bring them into the IT age. The estimated cost is yen 300 billion.

The panel urges changes in regulations but no details have yet been announced, because ``vested interests like accountants, lawyers and teachers' unions'' are opposed to what the consequence will be, acording to Dr. Ohmae. ``The IT revolution won't happen,'' wrote Dr. Ohmae in a magazine this month.

A few weeks back, government officials were quoted as saying there are 733 regulations and 124 laws obstructing e- commerce. The Diet might debate 38 Bills to revise laws and regulations, such as the Securities and Exchange Law, which requires brokerages to issue a hard copy prospectus in stock futures trading. Dr. Ohmae said ``fundamental changes are needed across the board.'' Japan needed e-commerce enabling laws, such as allowing digital signatures, application enabling laws and most comprehensive cyber laws.

The U.S. is scheduled to enact parts of its digital signature Bill on October 1. The E.U. expects to shortly approve plans to create a global digital signature-based system called Identrus. Other nations are rapidly following suit. These comments come from a man who has, as the Americans say successfully ``been there, done that.''

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Section  : International
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